Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be a. approaching infinity. b. 2.7. c. 2.5. d. 1.7.

Question

kleinb616 kleinb616

06-08-2020
Business

contestada

Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be a. approaching infinity. b. 2.7. c. 2.5. d. 1.7.

Respuesta :

Otras preguntas

exact square root of 90

A root of x2 – 5x – 1 = 0 is

What is the function of a preposition in a sentence?

round to the number of significant figures indicated:0.427=___ (two significant figures):_____*also please explain what significant figures are.

Estimate the maximum error made in approximating e^x by the polynomial 1 + x + {1}/{2}x^2 over the interval x of [-0.4,0.4].

solve problem 4/15 = x/ 75

What is the function of a preposition in a sentence?

A farmer has 1235 trees to be planted on a rectangular parcel of land. If there are 24 trees planted in each row and each row must be complete before it is plan

Which of the following fractions is equivalent to 3/8!is it 6/14,9/24,4/9,15/35

Almost every cell in the human body is replaced every few years through the process of _____.

ewomazinoade ewomazinoade · Answer 1 · 2020-08-11T03:44:09+02:00

Answer:

c. 2.5

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

the price elasticity would not change as a result of the change